Breaking News

Tweet TWEET

A.M. Best Places Ratings of Sequoia Insurance Company and Subsidiaries Under Review

  A.M. Best Places Ratings of Sequoia Insurance Company and Subsidiaries Under
  Review

Business Wire

OLDWICK, N.J. -- January 23, 2013

A.M. Best Co. has placed under review with positive implications the financial
strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of
“a-” of Sequoia Insurance Company and its wholly owned subsidiary, Sequoia
Indemnity Company, collectively referred to as Sequoia.

Concurrently, A.M. Best has placed under review with developing implications
the FSR of A- (Excellent) and ICR of “a-” of Personal Express Insurance
Company (Personal Express), a subsidiary of Sequoia. All companies are
headquartered in Monterey, CA.

The under review status for all three companies follows the announcement that
Sequoia’s immediate parent, Strongwood Insurance Holdings Corporation
(Strongwood), has entered into a definitive agreement under which it will sell
Sequoia and Personal Express to AmTrust Financial Services, Inc.
(headquartered in New York, NY) [NASDAQ:AFSI].

The under review with positive implications status for Sequoia reflects the
potential benefits it is expected to derive from being part of the AmTrust
enterprise, with access to additional financial and managerial resources. The
under review with developing implications status for Personal Express reflects
A.M. Best’s uncertainty of AmTrust’s future strategic plans for the company
given that AmTrust does not currently write personal lines business.

The transaction is expected to close during the second quarter of 2013,
pending regulatory approval. The ratings will remain under review until the
transaction closes and A.M. Best’s analysis is completed.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Co.
Adrienne Tortoriello
Senior Financial Analyst
(908) 439-2200, ext. 5088
adrienne.tortoriello@ambest.com
or
Jennifer Marshall
Managing Senior Financial Analyst
(908) 439-2200, ext. 5327
jennifer.marshall@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com